United Airlines CEO pitched American Airlines merger in talks with Trump

United Airlines CEO floated the idea of a possible merger with American Airlines, making it potentially one of the largest unions of airlines in years. 

What we know:

The discussion was held during a meeting CEO Scott Kirby had at the White House with President Trump, according to Reuters. 

Kirby opined that combining the two airlines would bring them in to make a more competitive international market. However, sources told Reuters that the Trump administration was focused more on trade deficits around the world. 

According to data from Official Airline Guide (OAG) Aviation, after including international flights, United and American are the world’s two largest airlines by available capacity in 2025. 

Path to a merger would face difficulties

What we don’t know:

With opposition from unions, rival airlines, lawmakers and airports, industry officials believe a deal between the two giants is unlikely. 

Antitrust lawyer Seth Bloom told Reuters that a deal would also have trouble clearing regulatory hurdles, even though enforcement has been favorable to the Trump administration. 

At this point, it does not appear that United has initiated any formal deal with American or if a process is underway. 

Duffy: There’s room for consolidation

What they’re saying:

Last week, Transportation Secretary Sean Duffy told a CNBC reporter that he believes there’s room for consolidation in the airline industry. 

“If there was a merger between some of the larger airlines, they would have to peel off ​some of their assets,” Duffy said on CNBC. “I am not ​going to pre-commit to anything.”

Big picture view:

According to data from the Department of Transportation, the airline industry in the U.S. is highly competitive between United Airlines, American Airlines, Delta and Southwest, controlling most of the air traffic in the country. 

Dig deeper:

Talk of the possible merger came just days before the U.S. began the war with Iran, a conflict that has caused a significant increase in oil and jet fuel prices. In the aftermath, multiple airlines have raised fares and bag fees to help with higher costs. 

By the numbers:

American Airlines remained profitable, making $111 million in 2025 but, due to debt and high-interest expenses, significantly trails its competitors in terms of profit margins. Of the four major airlines, Delta Air Lines leads the way with an estimated $5 billion in profit in 2025, according to Investopedia. United Airlines comes in second with $3.1 billion net income for the year. Southwest has nearly half a billion dollars in revenue coming in at $411 million profit.